Metro Cash and Carry, a Germany-based business-to-business (B2B) wholesale player, plans to consolidate its operations in Punjab by adding two centres — Zirakpur near Chandigarh and Amritsar.
Talking to Business Standard, Vishal Sehgal, head, corporate relations, Metro Cash and Carry India, said that the Zirakpur store would be rolled out in October and the one in Amritsar would be operational by the end of the calender year.
This would mark the presence of the wholesale chain at four locations in Punjab. Ludhiana and Jallandhar already have operational outlets.
Sehgal said that farmers in Punjab were forthcoming as they got better and certain remuneration by saving commissions while selling their produce to the wholesale chains. They also save on transportation costs as the collection is done at their doorstep, he said.
"We have created synergies with about 500 farmers in Punjab and new centres are lined up in the state. We expect to double the number", he said.
"There is a stiff competition not amongst the wholesale chains but with the mandis. Their efficiency is very high and it is a challenge to beat the local mandis", he added.
He pointed out that the new entrants, the organised players, could get an edge over mandis only because the consumption basket has grown manifold and this space can be taken over by the B2B wholesale chains.
Metro Cash and Carry, according to Sehgal, has close to 6,00,000 customers across India and 11 stores in different parts of the country. The total number of stores would go up to 13 by the year-end, after new stores commence operations in Punjab.
In order to take kirana>stores, restaurants, hotels and caterers into its fold,the company has been taking initiatives through awareness campaigns on hygiene and presentation.
